TIM Participações Plays Their Hand Well in the Recent 4G Auction in Brazil

Andrea Mangoni, CEO of TIM Participacoes

The Brazilian government has raised 2.93 billion Brazilian reals ($1.4 billion) from the auction of 4G wireless airwaves, president of national regulator Anatel, said that the average premium paid for the 54 frequencies sold in the auction was 31%.

Anatel stated that the operators that have won spectrum will have to set up 4G network in cities conducting soccer’s Confederations Cup by April. Telefónica Brasil submitted a bid worth 1.05 billion Brazilian reals ($507 million) to acquire 20 megahertz of national spectrum, while América Móvil vouched 844.5 million Brazilian reals ($407.7 million) for a similar block of spectrum.

TIM Participações offered 340 million Brazilian reals ($164.1 million) for 10 megahertz of spectrum, while Oi submitted a bid of 330.9 million Brazilian reals ($159.8 million) for it. América Móvil purchased 19 regional 4G frequencies for 144.3 million Brazilian reals ($69.6 million), while TIM Participações bought six regional 4G frequencies for 42.2 million Brazilian reals ($20.4 million).

George Soros’s Sunrise Telecomunicações paid 19.1 million Brazilian reals ($9.2 million) for two licences in São Paulo. DirecTV unit, Sky Brasil Serviços paid 90.6 million Brazilian reals ($43.7 million) for 12 regional frequencies that cover São Paulo and Rio de Janeiro states.

It would appear that TIM Participações played their hand rather better than most, paying an average premium of only 7.3% against an auction average of 31%. This leaves TIM well positioned to invest heavily in the frequencies purchased.

CFI

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